Federal Reports

Mastermind of Multimillion-Dollar Penny-Stock Scam Indicted for Fraud and Obstruction

Our Objective(s)To evaluate FAA’s oversight of Boeing 737 and 787 production, specifically its processes for (1) identifying and resolving production issues and (2) addressing allegations of undue pressure within the production environment.Why This AuditAviation safety is FAA’s primary mission, and FAA’s oversight of passenger aircraft in the United States includes ensuring that aircraft manufacturers meet requirements when producing new aircraft. However, since 2018, Boeing has experienced multiple manufacturing issues, in addition to complaints alleging ongoing production deficiencies and undue pressure on staff. In response to these concerns, the Chairmen and Ranking Members of the House Transportation and Infrastructure Committee and its Subcommittee on Aviation and the Chair of the Senate Committee on Commerce, Science, and Transportation requested this audit.What We FoundWeaknesses in FAA’s oversight processes and systems limit its ability to identify and resolve Boeing production issues.FAA’s approach to overseeing Boeing manufacturing and production does not use data-driven assessments to target audits, and FAA has not structured its audits to perform comprehensive assessments.FAA has not adequately ensured that Boeing and its suppliers can produce parts that conform to the approved design. FAA does not require its inspectors to review First Article Inspections that are intended to ensure a manufacturer’s processes can, at the outset, produce parts that meet engineering and design requirements.Further, FAA’s compliance system cannot track milestones or determine whether potential repetitive noncompliances have occurred, nor has FAA assessed the effectiveness of Boeing’s Safety Management System.Finally, FAA has not established criteria to return delegated authority to Boeing’s Organization Designation Authorization (ODA).FAA continues to face challenges addressing allegations of undue pressure within Boeing’s aircraft manufacturing.FAA issued guidance for reporting allegations of interference to FAA. However, FAA has not enforced requirements that Boeing provide information in sufficient detail on alleged undue pressure allegations. Additionally, changes to FAA’s review process have delayed FAA’s ability to resolve allegations of undue pressure reported by Boeing.Further, despite FAA organizational changes to improve oversight, FAA managers did not know about the investigations of ongoing undue pressure allegations when they initiated a request to expand the authorized functions of Boeing’s ODA.RecommendationsWe made 16 recommendations to improve FAA oversight of Boeing aircraft production. 

OIG reviewed whether Conservation Reserve Program recipients who received Climate-Smart Practice Incentive payments in FY 2023 were eligible for the incentive.

An Amtrak engineer based in Raleigh, North Carolina, received a written reprimand and a 40-day suspension without pay on October 7, 2024. Our investigation found that the employee violated company policies by using the company’s trademarked logo and a picture of one of its locomotives on the website for his personal business.

We identified the Commission’s major management and performance challenges by recognizing and assessing key themes from OIG audits, evaluations, hotline complaints, investigations, and an internal risk assessment, as well as reports published by external oversight bodies, such as the Office of Personnel Management and the Government Accountability Office. Additionally, we reviewed previous management challenge reports to determine if those challenges remain significant for this submission. Finally, we considered publicly available information and internal Commission records. In addition to the management challenges, we are providing management’s statements regarding prior and planned actions to address each challenge. The resulting product provides greater transparency to achieve improved agency performance.

Evaluation of the FLRA's Compliance with the Privacy Act Mandatory Annual Training Requirement for Fiscal Year 2023